Binance Removes LUNA Futures, Margin Pairs and Spot Trading Pairs

Some projects have been hit harder than others by the force of bear market. LUNA, which is the governance token behind Terra ecosystem, has suffered more pain than any other coin. Binance, the world’s largest cryptocurrency exchange — is now turning its back on the token.

Binance announced on May 12 that perpetual contracts were being suspended for the LUNA/USDT pairing after lowering the leverage to 8x.

This decision comes after a series events that saw the price of LUNA plummet to more than 99%. Investors in crypto communities suffered millions of dollars of losses.

As mentioned previously, Binance Futures will conduct an automatic settlement on the $LUNA USDT-Margined Contract and then delist the Futures contract at May 12, 2022 3:30pm UTC.https://t.co/774JF0HcqP

— Binance (@binance), May 12, 2022

But that wasn’t enough. LUNA continued to fall without any signs of stopping. Binance announced that it would remove cross and isolated margin pairings, spot trading pairs BUSD margined perpetual contract on LUNA just hours after the previous announcement. This effectively said goodbye to the hyped cryptocurrency.

Image by Binance

This isn’t a sudden move. After a huge wave of liquidations caused by overleveraged positions, Binance had reduced the maximum leverage for LUNA futures from 8X to 8X on May 11. Anyone trying to save a long-leveraged position would have failed, since the LUNA token currently trades at $0.005.

Yesterday, Binance CEO Changpeng Zhao warned via Twitter that trading the market was important because it is a new market with new stablecoins. It can become a vicious cycle if they fall. This message was about all that was happening to UST.

Many people asked me about today’s markets. The market must be respected, but we should also exercise caution. It fluctuates in cycles. It doesn’t always make sense. 1/4

— CZ

Binance (@cz_binance), May 11, 2022

Several people lose their jobs as a result of the collapse in LUNA prices

The price of LUNA dropped from $40 to $1 on May 11. This was so common that Reddit users even spoke out about suicide. Others reported having lost their savings and mortgages as a result of the crash.

Top post on Terra’s Reddit Forum. Reddit Image

Anyone with $100,000 invested in Terra’s project saw their assets drop to under $500 within a week. This does not include those who froze their money with the “safe” UST stabilitycoin. Even though UST was intended to be worth $1, the token crashed to $0.2 — which is catastrophic for any conservative or aggressive investor.

My 2.8 million dollar is worth $1000

HAHAHAHAHAAHAHAHAHAHAHAHAHAHAHHAHAHAHAHAHAHAHAHA. Yes, I am packing this in

pic.twitter.com/qeiVN5yG2w

— KSICRYPTO (@ksicrypto) May 12, 2022

Terra (LUNA), the Terra team, announced that they are currently working on specific measures in order to bring the project back into life. However, these actions have not yet had an impact on the wider market sentiment.

Validators have applied a patch to disable additional delegations and will coordinate to restart network within a few minutes. https://t.co/4gakxPLpLm

— Terra (UST)

Powered by LUNA

(@terra_money May 12, 2022

Terra’s team is currently considering all suggestions to resuscitate LUNA or UST, even those that would be impossible before such as altering the algorithm. Terra’s development team announced today that they have stopped using the blockchain in order to “avoid governance attacks” following a $LUNA inflation.

Do Kwon, Terra founder, stated on May 11th that they are working to bring back the project. However, other exchanges could follow Binance’s lead and delist LUNA/USDT trading until further notice.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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